India’s second-largest software company, Infosys (INFY.NS), has filed a counterclaim against U.S.-based rival Cognizant (CTSH.O) in a Texas federal court. The legal dispute has intensified with accusations of anti-competitive practices, poaching, and intellectual property misuse, marking a significant clash between two global IT giants.
Infosys alleges that Cognizant has implemented restrictive clauses in contracts to prevent clients from awarding IT services work to competitors. Additionally, the Bengaluru-based company accuses Cognizant of refusing to provide training on its proprietary software, hindering competition.
The counterclaim also highlights Cognizant’s alleged targeted recruitment of key Infosys executives. A focal point of this claim is the appointment of S Ravi Kumar, a former senior executive at Infosys, as Cognizant’s CEO in 2023. Infosys contends that this move disrupted its ability to develop a competing software product, Infosys Helix.
Cognizant has dismissed the allegations, asserting that it encourages fair competition. However, it accused Infosys of unfairly using its intellectual property (IP). “Cognizant encourages competition, but competitors cannot use Cognizant’s IP to unfairly compete, as Infosys has done,” the company stated.
A Lawsuit That Sparked the Counterclaim
The counterclaim is a response to a lawsuit filed by Cognizant subsidiary TriZetto last August. TriZetto accused Infosys of stealing trade secrets related to its healthcare insurance software. Specifically, TriZetto alleged that Infosys misused its proprietary Facets and QNXT software, which automate administrative tasks for healthcare insurers, to create “Test Cases for Facets” and repackage TriZetto’s data into Infosys products.
Infosys is seeking triple damages for the alleged harm caused, along with attorney fees and litigation costs. The exact amount of damages remains undisclosed.
